LONDON, Feb. 9, 2017 /PRNewswire/ -- Noble Corporation
plc (NYSE: NE) today announced results for the fourth quarter and
full year 2016. Quarterly results demonstrated strong execution
across the Company's global fleet and further success with managing
costs. The Company also recognized a non-cash charge in the quarter
relating to impairments for a portion of its floating fleet.
For the fourth quarter of 2016, the Company reported a net loss
attributable to Noble Corporation plc of $1.3 billion, or $5.36 per diluted share, on revenues of
$410 million. The fourth quarter
results included the following after-tax items:
- A charge totaling $1.3 billion,
or $5.34 per diluted share, relating
to the impairment of five rigs and certain other capital
spares.
- Gains totaling $32 million, or
$0.13 per diluted share, relating to
the extinguishment of debt, a contract termination lump sum
settlement and a discrete tax item.
Excluding the impact of the after-tax items, the net loss
attributable to Noble Corporation plc for the fourth quarter of
2016, would have been $37 million, or
$0.15 per diluted share, on revenues
of $394 million. The results compared
to a net loss attributable to the Company for the third quarter of
2016 of $55 million, or $0.23 per diluted share, on revenues of
$385 million.
For the fourth quarter of 2015, Noble Corporation plc reported a
net loss attributable to the Company of $152
million, or $0.63 per diluted
share, on revenues of $858 million.
Results in the fourth quarter of 2015 included the following
after-tax items:
- A charge of $418 million, or
$1.73 per diluted share, relating to
the impairment of two rigs and certain corporate assets.
- A net gain of $140 million, or
$0.58 per diluted share, following
the cancellation of the remaining portion of a customer's contract
commitment.
Excluding the impact of these items, fourth quarter 2015 net
income attributable to the Company would have been $126 million, or $0.52 per diluted share, on revenues of
$713 million.
For the twelve months ended December 31,
2016, Noble Corporation plc reported a net loss attributable
to the Company of $930 million, or
$3.82 per diluted share, on revenues
of $2.3 billion. Results for the year
included the following after-tax items:
- Impairment charges taken in the second and fourth quarters
totaling $1.3 billion, or
$5.40 per diluted share.
- Gains totaling $32 million, or
$0.13 per diluted share relating to
the extinguishment of debt and discrete tax items.
- Net income of $352 million, or
$1.45 per diluted share relating to
contract cancellation settlements with two customers.
- Net income of $13 million, or
$0.05 per diluted share, relating to
the valuation of a derivative instrument pertaining to one of the
contract cancellation settlements with a customer.
Excluding the after-tax items, net loss attributable to Noble
Corporation plc for the twelve months ended December 31, 2016, would have been $12 million, or $0.05 per diluted share, on revenues of
$1.9 billion.
For the twelve months ended December 31,
2015, net income attributable to the Company was
$511 million, or $2.06 per diluted share, on revenues of
$3.4 billion. Results for the year
included the following after-tax items:
- The previously noted impairment charge totaling $418 million, or $1.69 per diluted share.
- The previously noted net gain of $140
million, or $0.56 per diluted
share, following the cancellation of the remaining portion of a
customer's contract commitment.
- A net gain of $149 million, or
$0.60 per diluted share, resulting
from an arbitration award.
Excluding the after-tax items, net income attributable to the
Company for the twelve months ended December
31, 2015 would have been $640
million, or $2.59 per diluted
share, on revenues of $3.1
billion.
A Non-GAAP supporting schedule is available following the
financial information attached to this press release and at
www.noblecorp.com providing a reconciliation for total revenues,
net income (loss) attributable to Noble Corporation, income tax and
diluted earnings per share for the fourth quarters and full years
of 2016 and 2015.
David W. Williams, Chairman,
President and Chief Executive Officer of Noble Corporation plc,
stated, "2016 represents another outstanding year of operating
efficiency through a very challenging period of this cycle.
Fleet downtime in the fourth quarter at 4.8 percent was once again
below our guided level, and we ended the year with an impressive
downtime measure of 4.3 percent. Cost management initiatives
implemented throughout the year, along with a reduction in fleet
operating days, drove fourth quarter operating costs down by 15
percent compared to the previous quarter, with costs down almost 30
percent year-over-year. Improved performance in our jackup rig
fleet was another noteworthy accomplishment in the quarter,
including the commencement of operations on the Noble Lloyd
Noble. Continued focus and improvement on these important
measures of our operational capabilities and the ingenuity of our
project engineering teams remain critical aspects of long-term
success in our highly cyclical industry."
Contract drilling services revenue in the fourth quarter of 2016
totaled $401 million, or $385 million adjusted for a $16 million contract termination lump sum
settlement for the jackup rig Noble Tom Prosser.
The adjusted revenues in the fourth quarter compare to
$373 million in the third quarter of
2016, with the slight improvement related primarily to a seven
percent increase in fleet operating days, seen primarily in the
Company's jackup rig sector. Utilization of the Company's fleet
improved to 62 percent in the fourth quarter compared to 59 percent
in the previous quarter, while average daily revenues were largely
unchanged from the third quarter at $238,700. Contract drilling services costs in the
fourth quarter continued the downward trend seen throughout 2016,
declining 15 percent to $177 million
compared to $207 million in the
previous quarter. The decline resulted from lower costs associated
with stacked rigs, administrative and field support, repair and
maintenance and rig retirements. These factors were partially
offset by higher costs pertaining to commencement of operations on
two rigs. Contract drilling margin for the fourth quarter of 2016,
excluding the contract termination lump sum settlement, improved to
54 percent compared to 45 percent in the previous quarter, aided
substantially by improvement in the jackup rig fleet, including the
commencement of operations on the Noble Lloyd Noble.
Net cash from operating activities totaled $166 million in the fourth quarter of 2016 and
$1.1 billion for the full year 2016.
Capital expenditures in the fourth quarter were $68 million, resulting in capital expenditures
for the full year 2016 of $660
million, including capitalized interest and $435 million associated with the delivery of the
Noble Lloyd Noble. With the conclusion of the Company's
current newbuild program in 2016, total capital expenditures in
2017 are expected to decline to approximately $115 million based on current offshore market
fundamentals.
During the fourth quarter, Noble Corporation issued $1.0 billion aggregate principal amount of 7.75%
senior unsecured notes due in 2024. Net proceeds from the
transaction totaled approximately $970
million, of which $762 million
was used to pay the purchase price and accrued interest in a
concurrent tender offer for senior notes due in 2020, 2021 and
2022. At December 31, 2016, the
Company reported cash and equivalents of $726 million, while a revolver with capacity of
$2.445 billion remained undrawn,
resulting in total liquidity of an estimated $3.2 billion.
Operating Highlights
Utilization of the
Company's floating fleet for the fourth quarter of 2016 improved to
43 percent compared to 41 percent during the previous quarter. The
modest improvement was driven by an increase in operating days for
the drillships Noble Bully I and Noble Globetrotter
I, which completed a repair and maintenance project and
regulatory procedures, respectively, during the third quarter.
Average daily revenues in the fourth quarter were $429,400 compared to $441,600 in the third quarter, with the decline
largely due to lower revenues from the Noble Paul Romano
following the commencement in October
2016 of a contract extension at a reduced dayrate. During
the fourth quarter, the Company recognized partial impairments for
the semisubmersible rigs Noble Dave
Beard, Noble Amos
Runner and Noble Clyde
Boudreaux, while full impairments were taken for the
semisubmersible rigs Noble Max
Smith and Noble Homer
Ferrington. Both rigs have been retired from service,
reducing the Company's floating rig fleet to 14 units.
The Company's jackup rig fleet recorded utilization in the
fourth quarter of 86 percent compared to 80 percent in the previous
quarter. The improvement was due to the startup of the Noble
Lloyd Noble and commencement of contracts on the Noble
Regina Allen and Noble Houston
Colbert offshore the North Sea and Middle East, respectively, following periods
of idle time. Utilization in the quarter was also supported by
fewer shipyard days for the Noble Alan Hay. Partially
offsetting the improvement were idle days on the Noble Tom
Prosser following the completion of a contract offshore
Australia early in the third
quarter of 2016. Average daily revenues in the fourth quarter,
excluding the contract termination lump sum settlement, were
$108,900 compared to $109,400 in the previous quarter.
At December 31, 2016, the
Company's contract backlog totaled $3.3
billion. The reduction in backlog contemplates the
previously disclosed agreement with Shell pertaining to contract
amendments for the Noble Bully II, Noble Globetrotter
I and Noble Globetrotter II. An estimated
$2.3 billion of the backlog total
relates to the floating rig fleet and $1.0
billion to the jackup rig fleet. Approximately 52 percent of
the available rig operating days in 2017 are committed to
contracts, including 33 percent of the floating rig fleet and 71
percent of the jackup fleet. In 2018, 32 percent of available
operating days are committed to contracts, including 29 percent and
36 percent of the floating and jackup rigs days, respectively. The
estimates of total backlog and available operating days committed
to contracts in the jackup fleet excludes the recently announced
five-year contract extensions for the Noble Roger Lewis and Noble Scott Marks. The contract extensions
add approximately $581 million to the
contract backlog, while available operating days committed to
contracts in the jackup fleet increase to 80 percent and 50 percent
in 2017 and 2018, respectively.
Outlook
Williams concluded by acknowledging the
success of some recent events while noting the importance of
remaining operationally focused. He said, "Over the past two-plus
years our efforts have been heavily concentrated on operating
efficiency as we managed through a historically difficult cyclical
downturn. Our efforts have paid off, allowing us to complete
another year with positive free cash flow from operations following
our strong operational performance. This achievement is supported
by our lower-trending fleet downtime, successful cost management
initiatives and strong safety results. The contract amendments
announced in the fourth quarter for three of our drillships provide
much improved clarity with respect to future cash flow generation.
At the same time, our recent issuance of senior unsecured notes
represents another successful step in maintaining a solid capital
structure. Collectively, these actions provide a predictable level
of cash flow and a more manageable debt maturity profile that
should provide a smoother pathway through the next phase of this
cycle.
"Our industry continues to experience weakness, but Noble's
strong base of revenue, which totals more than $1.0 billion in 2017, along with further
reductions in contract drilling costs and capital expenditures,
should result in another year of positive free cash flow. We will
dedicate 2017 to building on our previous accomplishments,
strengthening our competitive position for the future. Also, it is
not too early to turn an eye toward industry recovery. Although
more time will be required before obvious measures of fundamental
improvement emerge, we believe Noble will remain successful through
the inevitable upturn by virtue of a strong operating foundation
and strategic flexibility, afforded by our excellent operational
performance, a modern, versatile and well-positioned fleet, our
strong contract coverage and a solid balance sheet and strong
liquidity."
About Noble Corporation plc
Noble is a leading
offshore drilling contractor for the oil and gas industry. The
Company owns and operates one of the most modern, versatile and
technically advanced fleets in the offshore drilling industry.
Noble performs, through its subsidiaries, contract drilling
services with a fleet of 28 offshore drilling units, consisting of
14 semisubmersibles and drillships and 14 jackups, focused largely
on ultra-deepwater and high-specification jackup drilling
opportunities in both established and emerging regions worldwide.
Noble is a public limited company registered in England and Wales with company number 08354954 and
registered office at Devonshire House, 1 Mayfair Place,
London, W1J 8AJ England. Additional information on Noble is
available at
www.noblecorp.com.
Forward-looking Disclosure Statement
Statements
regarding contract backlog, future earnings, costs, expense
management, revenue, rig demand, fleet condition, operational or
financial performance, shareholder value, contract commitments,
dayrates, contract commencements, contract extensions, renewals or
renegotiations, letters of intent or award, industry fundamentals,
customer relationships and requirements, strategic initiatives,
future performance, growth opportunities, market outlook, capital
allocation strategies, liquidity, competitive position, capital
expenditures, financial flexibility, debt levels, debt repayment,
as well as any other statements that are not historical facts in
this release, are forward-looking statements that involve certain
risks, uncertainties and assumptions. These include but are not
limited to operating hazards and delays, risks associated with
operations outside of the U.S., actions by regulatory authorities,
customers and other third parties, legislation and regulations
affecting drilling operations, compliance with regulatory
requirements, factors affecting the level of activity in the oil
and gas industry, supply and demand of drilling rigs, factors
affecting the duration of contracts, the actual amount of downtime,
factors that reduce applicable dayrates, violations of
anti-corruption laws, hurricanes and other weather conditions,
market conditions, the future price of oil and gas and other
factors detailed in the Company's most recent Form 10-K, Form
10-Q's and other filings with the Securities and Exchange
Commission. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those indicated.
Conference Call
Noble also has scheduled a conference call and webcast related to
its fourth quarter and full year 2016 results on Friday, February 10, 2017, at 8:00 a.m. U.S. Central Standard Time. Interested
parties are invited to listen to the call by dialing
1-877-201-0168, or internationally 1-647-788-4901, using access
code: 21882644, or by asking for the Noble Corporation plc
conference call. Interested parties may also listen over the
Internet through a link posted in the Investor Relations section of
the Company's Website.
A replay of the conference call will be available on
Friday, February 10, 2017, beginning
at 11:00 a.m. U.S. Central Standard
Time, through Friday, March 10, 2017,
ending at 11:00 p.m. U.S. Central
Standard Time. The phone number for the conference call replay is
1-855-859-2056 or, for calls from outside of the U.S.,
1-404-537-3406, using access code: 21882644. The replay will
also be available on the Company's Website following the end of the
live call.
NOBLE
CORPORATION PLC AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
Contract
drilling services
|
|
$
400,879
|
|
$
837,129
|
|
$
2,242,200
|
|
$
3,261,610
|
|
Reimbursables
|
|
9,160
|
|
20,555
|
|
59,432
|
|
90,642
|
|
Other
|
|
117
|
|
-
|
|
433
|
|
-
|
|
|
|
410,156
|
|
857,684
|
|
2,302,065
|
|
3,352,252
|
Operating
costs and expenses
|
|
|
|
|
|
|
|
|
|
Contract
drilling services
|
|
176,810
|
|
298,505
|
|
879,438
|
|
1,232,529
|
|
Reimbursables
|
|
6,053
|
|
14,684
|
|
45,499
|
|
70,276
|
|
Depreciation
and amortization
|
|
155,160
|
|
160,392
|
|
611,067
|
|
634,305
|
|
General and
administrative
|
|
14,912
|
|
15,285
|
|
69,258
|
|
76,843
|
|
Loss on
impairment
|
|
1,442,133
|
|
418,298
|
|
1,458,749
|
|
418,298
|
|
|
|
1,795,068
|
|
907,164
|
|
3,064,011
|
|
2,432,251
|
|
|
|
|
|
|
|
|
|
|
Operating
income (loss)
|
|
(1,384,912)
|
|
(49,480)
|
|
(761,946)
|
|
920,001
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
Interest
expense, net of amount capitalized
|
|
(55,940)
|
|
(52,658)
|
|
(222,915)
|
|
(213,854)
|
|
Gain on
extinguishment of debt, net
|
|
6,748
|
|
-
|
|
17,814
|
|
-
|
|
Interest income
and other, net
|
|
1,461
|
|
(799)
|
|
18
|
|
36,286
|
Income
(loss) before income taxes
|
|
(1,432,643)
|
|
(102,937)
|
|
(967,029)
|
|
742,433
|
|
Income tax
benefit (provision)
|
|
149,473
|
|
(34,591)
|
|
109,156
|
|
(159,232)
|
Net income
(loss)
|
|
(1,283,170)
|
|
(137,528)
|
|
(857,873)
|
|
583,201
|
|
Net income
attributable to noncontrolling interests
|
|
(19,680)
|
|
(14,713)
|
|
(71,707)
|
|
(72,201)
|
Net income
(loss) attributable to Noble Corporation plc
|
|
$
(1,302,850)
|
|
$
(152,241)
|
|
$
(929,580)
|
|
$
511,000
|
|
|
|
|
|
|
|
|
|
|
Per share
data:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
(5.36)
|
|
$
(0.63)
|
|
$
(3.82)
|
|
$
2.06
|
|
Diluted
|
|
$
(5.36)
|
|
$
(0.63)
|
|
$
(3.82)
|
|
$
2.06
|
NOBLE
CORPORATION PLC AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2016
|
|
2015
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
725,722
|
|
$
512,245
|
|
Accounts
receivable
|
|
319,152
|
|
498,931
|
|
Prepaid
expenses and other current assets
|
|
147,740
|
|
229,442
|
Total current
assets
|
|
1,192,614
|
|
1,240,618
|
|
|
|
|
|
|
Property and
equipment, at cost
|
|
12,364,888
|
|
14,056,323
|
|
Accumulated
depreciation
|
|
(2,302,940)
|
|
(2,572,700)
|
Property and
equipment, net
|
|
10,061,948
|
|
11,483,623
|
|
|
|
|
|
|
Other
assets
|
|
185,555
|
|
141,404
|
|
Total
assets
|
|
$
11,440,117
|
|
$
12,865,645
|
|
|
|
|
|
|
LIABILITIES
AND EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Current
maturities of long-term debt
|
|
$
299,882
|
|
$
299,924
|
|
Accounts
payable
|
|
108,224
|
|
223,221
|
|
Accrued payroll
and related costs
|
|
48,383
|
|
81,464
|
|
Other current
liabilities
|
|
176,804
|
|
258,975
|
Total current
liabilities
|
|
633,293
|
|
863,584
|
|
|
|
|
|
|
Long-term
debt
|
|
4,040,229
|
|
4,162,638
|
Other
liabilities
|
|
299,150
|
|
417,193
|
|
Total
liabilities
|
|
4,972,672
|
|
5,443,415
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Total
shareholders' equity
|
|
5,758,681
|
|
6,699,229
|
|
Noncontrolling
interests
|
|
708,764
|
|
723,001
|
|
Total
equity
|
|
6,467,445
|
|
7,422,230
|
|
Total
liabilities and equity
|
|
$
11,440,117
|
|
$
12,865,645
|
NOBLE
CORPORATION PLC AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
Twelve Months
Ended
|
|
|
|
December
31,
|
|
|
|
2016
|
|
2015
|
Cash flows
from operating activities
|
|
|
|
|
|
Net income
(loss)
|
|
$
(857,873)
|
|
$
583,201
|
|
Adjustments to
reconcile net income to net cash from operating
activities:
|
|
|
|
|
|
Depreciation
and amortization
|
|
611,067
|
|
634,305
|
|
Loss on
impairment
|
|
1,458,749
|
|
418,298
|
|
Gain on
extinguishment of debt, net
|
|
(17,814)
|
|
-
|
|
Other changes
in operating activities
|
|
(65,847)
|
|
126,547
|
|
Net cash from
operating activities
|
|
1,128,282
|
|
1,762,351
|
|
|
|
|
|
|
Cash flows
from investing activities
|
|
|
|
|
|
New
construction
|
|
(435,064)
|
|
(52,522)
|
|
Other capital
expenditures
|
|
(202,428)
|
|
(345,082)
|
|
Capitalized
interest
|
|
(22,433)
|
|
(24,940)
|
|
Other investing
activities
|
|
(10,006)
|
|
(9,993)
|
|
Net cash from
investing activities
|
|
(669,931)
|
|
(432,537)
|
|
|
|
|
|
|
Cash flows
from financing activities
|
|
|
|
|
|
Net change in
borrowings outstanding on bank credit facilities
|
|
-
|
|
(1,123,495)
|
|
Issuance of
senior notes
|
|
980,100
|
|
1,092,728
|
|
Debt issuance
costs on senior notes and credit facilities
|
|
(12,111)
|
|
(16,070)
|
|
Repayment of
long-term debt
|
|
(300,000)
|
|
(350,000)
|
|
Early repayment
of long-term debt
|
|
(749,338)
|
|
-
|
|
Premiums paid
on early repayment of long-term debt
|
|
(24,649)
|
|
-
|
|
Dividend
payments
|
|
(47,534)
|
|
(315,534)
|
|
Dividends paid
to noncontrolling interests
|
|
(85,944)
|
|
(71,504)
|
|
Repurchases of
shares
|
|
-
|
|
(100,630)
|
|
Other financing
activities
|
|
(5,398)
|
|
(1,574)
|
|
Net cash from
financing activities
|
|
(244,874)
|
|
(886,079)
|
|
Net change in
cash and cash equivalents
|
|
213,477
|
|
443,735
|
Cash and
cash equivalents, beginning of period
|
|
512,245
|
|
68,510
|
Cash and
cash equivalents, end of period
|
|
$
725,722
|
|
$
512,245
|
NOBLE
CORPORATION PLC AND SUBSIDIARIES
|
FINANCIAL
AND OPERATIONAL INFORMATION BY SEGMENT
|
(In thousands,
except operating statistics)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Three Months Ended
September 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
|
Contract
|
|
|
|
|
|
Contract
|
|
|
|
|
|
Contract
|
|
|
|
|
|
|
Drilling
|
|
|
|
|
|
Drilling
|
|
|
|
|
|
Drilling
|
|
|
|
|
|
|
Services
|
|
Other
|
|
Total
|
|
Services
|
|
Other
|
|
Total
|
|
Services
|
|
Other
|
|
Total
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract
drilling services
|
|
$
400,879
|
|
$
-
|
|
$
400,879
|
|
$ 837,129
|
|
$
-
|
|
$ 837,129
|
|
$ 373,257
|
|
$
-
|
|
$ 373,257
|
Reimbursables
|
|
9,160
|
|
-
|
|
9,160
|
|
18,510
|
|
2,045
|
|
20,555
|
|
11,733
|
|
-
|
|
11,733
|
Other
|
|
117
|
|
-
|
|
117
|
|
-
|
|
-
|
|
-
|
|
163
|
|
-
|
|
163
|
|
|
$
410,156
|
|
$
-
|
|
$
410,156
|
|
$ 855,639
|
|
$
2,045
|
|
$ 857,684
|
|
$ 385,153
|
|
$
-
|
|
$ 385,153
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract
drilling services
|
|
$
176,810
|
|
$
-
|
|
$
176,810
|
|
$ 298,505
|
|
$
-
|
|
$ 298,505
|
|
$ 207,204
|
|
$
-
|
|
$ 207,204
|
Reimbursables
|
|
6,053
|
|
-
|
|
6,053
|
|
12,590
|
|
2,094
|
|
14,684
|
|
9,142
|
|
-
|
|
9,142
|
Depreciation
and amortization
|
|
149,335
|
|
5,825
|
|
155,160
|
|
154,781
|
|
5,611
|
|
160,392
|
|
149,398
|
|
5,844
|
|
155,242
|
General and
administrative
|
|
14,912
|
|
-
|
|
14,912
|
|
15,285
|
|
-
|
|
15,285
|
|
15,773
|
|
-
|
|
15,773
|
Loss on
impairment
|
|
1,442,133
|
|
-
|
|
1,442,133
|
|
405,512
|
|
12,786
|
|
418,298
|
|
-
|
|
-
|
|
-
|
|
|
$
1,789,243
|
|
$
5,825
|
|
$
1,795,068
|
|
$ 886,673
|
|
$
20,491
|
|
$ 907,164
|
|
$ 381,517
|
|
$
5,844
|
|
$ 387,361
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income (loss)
|
|
$
(1,379,087)
|
|
$ (5,825)
|
|
$
(1,384,912)
|
|
$ (31,034)
|
|
$ (18,446)
|
|
$ (49,480)
|
|
$
3,636
|
|
$ (5,844)
|
|
$
(2,208)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jackups:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rig
Utilization
|
|
86%
|
|
|
|
|
|
82%
|
|
|
|
|
|
80%
|
|
|
|
|
Operating
Days
|
|
1,050
|
|
|
|
|
|
979
|
|
|
|
|
|
954
|
|
|
|
|
Average Dayrate
(1)
|
|
$
124,470
|
|
|
|
|
|
$ 145,283
|
|
|
|
|
|
$ 109,387
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Semisubmersibles:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rig
Utilization
|
|
13%
|
|
|
|
|
|
67%
|
|
|
|
|
|
13%
|
|
|
|
|
Operating
Days
|
|
92
|
|
|
|
|
|
496
|
|
|
|
|
|
92
|
|
|
|
|
Average
Dayrate
|
|
$
166,253
|
|
|
|
|
|
$ 315,459
|
|
|
|
|
|
$ 293,269
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drillships:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rig
Utilization
|
|
73%
|
|
|
|
|
|
99%
|
|
|
|
|
|
70%
|
|
|
|
|
Operating
Days
|
|
537
|
|
|
|
|
|
800
|
|
|
|
|
|
517
|
|
|
|
|
Average Dayrate
(2)
|
|
$
474,462
|
|
|
|
|
|
$ 672,972
|
|
|
|
|
|
$ 467,949
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rig
Utilization
|
|
62%
|
|
|
|
|
|
83%
|
|
|
|
|
|
59%
|
|
|
|
|
Operating
Days
|
|
1,679
|
|
|
|
|
|
2,275
|
|
|
|
|
|
1,563
|
|
|
|
|
Average Dayrate
(1)(2)
|
|
$
238,704
|
|
|
|
|
|
$ 367,953
|
|
|
|
|
|
$ 238,869
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)The
fourth quarter of 2016 includes the contract cancellation of the
Noble Tom Prosser. Exclusive of this item, the average
dayrate for the fourth quarter of 2016 would have been $108,880 and
$228,954 for jackups and the total fleet,
respectively.
|
|
(2)Includes dayrate portion of the
settlement of the Noble Discoverer contract cancellation
with Shell during the fourth quarter of 2015. Exclusive of the
settlement, the average dayrate for the fourth quarter of 2015
would have been $492,242 and $304,412 for drillships and the total
fleet, respectively.
|
NOBLE
CORPORATION PLC AND SUBSIDIARIES
|
CALCULATION
OF BASIC AND DILUTED NET INCOME PER SHARE
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
The following
table sets forth the computation of basic and diluted net income
per share:
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
Twelve
months ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Numerator:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
Net income
(loss) attributable to Noble Corporation plc
|
|
$
(1,302,850)
|
|
$
(152,241)
|
|
$
(929,580)
|
|
$
511,000
|
Earnings allocated to
unvested share-based payment awards (1)
|
|
-
|
|
-
|
|
-
|
|
(11,208)
|
Net income
(loss) to common shareholders - basic
|
|
$
(1,302,850)
|
|
$
(152,241)
|
|
$
(929,580)
|
|
$
499,792
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
Net income
(loss) attributable to Noble Corporation plc
|
|
$
(1,302,850)
|
|
$
(152,241)
|
|
$
(929,580)
|
|
$
511,000
|
Earnings allocated to
unvested share-based payment awards (1)
|
|
-
|
|
-
|
|
-
|
|
(11,208)
|
Net income
(loss) to common shareholders - diluted
|
|
$
(1,302,850)
|
|
$
(152,241)
|
|
$
(929,580)
|
|
$
499,792
|
|
|
|
|
|
|
|
|
|
Denominator:
|
|
|
|
|
|
|
|
|
Weighted
average number of shares outstanding - basic
|
|
243,238
|
|
241,974
|
|
243,127
|
|
242,146
|
Incremental shares
issuable from assumed exercise of stock options
(1)
|
|
-
|
|
-
|
|
-
|
|
-
|
Weighted
average number of shares outstanding - diluted
|
|
243,238
|
|
241,974
|
|
243,127
|
|
242,146
|
|
|
|
|
|
|
|
|
|
Weighted
average unvested share-based payment awards
|
|
-
|
|
-
|
|
-
|
|
5,430
|
|
|
|
|
|
|
|
|
|
Earnings
(loss) per share
|
|
|
|
|
|
|
|
|
Basic
|
|
$
(5.36)
|
|
$
(0.63)
|
|
$
(3.82)
|
|
$
2.06
|
Diluted
|
|
$
(5.36)
|
|
$
(0.63)
|
|
$
(3.82)
|
|
$
2.06
|
|
|
|
|
|
|
|
|
|
(1)The
effect of unvested shares and stock options is not included in the
computation of diluted shares for periods in which a net loss
occurs, because to do so would be anti-dilutive.
|
Non-GAAP
Reconciliation
|
|
Certain non-GAAP
performance measures and corresponding reconciliations to GAAP
financial measures for the Company have been provided for
meaningful comparisons between current results and prior operating
periods. Generally, a non-GAAP financial measure is a numerical
measure of a company's performance, financial position, or cash
flows that excludes or includes amounts that are not normally
included or excluded in the most directly comparable measure
calculated and presented in accordance with generally accepted
accounting principles. In order to fully assess the financial
operating results, management believes that the results of
operations, adjusted to exclude the following items, which are
included in the Company's press release issued on February 9, 2017,
and discussed in the related conference call on February 10, 2017,
are appropriate measures of the continuing and normal operations of
the Company:
|
|
|
(i)
|
In the first quarter
of 2016, a discrete tax item;
|
(ii)
|
In the second quarter
of 2016, the Noble Sam Croft and Noble Tom Madden
contract cancellations with Freeport-McMoRan Inc. and its
subsidiary, Freeport-McMoRan Oil & Gas ("Freeport"), including
the contract termination date valuation of a derivative instrument
pertaining to future contingent payments from Freeport, the early
retirement of debt in connection with the Company's tender offers
on its Senior Notes due in 2020 and 2021, the impairment of certain
capital spares and second quarter discrete tax items;
|
(iii)
|
In the fourth quarter
of 2016, the contract cancellation of the Noble Tom Prosser
with Quadrant Energy, the impairment of five of our rigs and
certain other capital spares, the early retirement of debt in
connection with the Company's tender offers on its Senior Notes due
in 2020, 2021 and 2022 and a fourth quarter discrete tax
item;
|
(iv)
|
In the third quarter
of 2015, the recognition of proceeds of the Noble Homer
Ferrington arbitration award; and
|
(v)
|
In the fourth quarter
of 2015, the settlement of the Noble Discoverer contract
cancellation with Shell and the impairment of two of our rigs,
certain capital spare equipment and certain corporate
assets.
|
|
These non-GAAP
adjusted measures should be considered in addition to, and not as a
substitute for, or superior to, contract drilling revenue, contract
drilling cost, contract drilling margin, average daily revenue,
operating income, cash flows from operations, or other measures of
financial performance prepared in accordance with GAAP. Please see
the following Non-GAAP Financial Measures and Reconciliations for a
complete description of the adjustments.
|
NOBLE CORPORATION
PLC AND SUBSIDIARIES
|
NON-GAAP
MEASURES
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
total revenue
|
|
Three Months
Ended,
|
|
Twelve Months
Ended
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling
services revenue
|
|
$
400,879
|
|
$
837,129
|
|
$
2,242,200
|
|
$
3,261,610
|
|
|
Reimbursables
|
|
9,160
|
|
20,555
|
|
59,432
|
|
90,642
|
|
|
Other
|
|
117
|
|
-
|
|
433
|
|
-
|
|
Total
revenue
|
|
$
410,156
|
|
$
857,684
|
|
$
2,302,065
|
|
$
3,352,252
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
Noble Homer
Ferrington arbitration award
|
|
-
|
|
-
|
|
-
|
|
(136,406)
|
|
|
Noble
Discoverer cancellation agreement
|
|
-
|
|
(144,562)
|
|
-
|
|
(144,562)
|
|
|
Noble Tom
Prosser cancellation agreement
|
|
(16,375)
|
|
-
|
|
(16,375)
|
|
-
|
|
|
Cancellations with
Freeport:
|
|
|
|
|
|
|
|
|
|
|
|
Contractual
items
|
|
-
|
|
-
|
|
(379,143)
|
|
-
|
|
|
|
Termination date
valuation of contingent payments
|
|
-
|
|
-
|
|
(13,900)
|
|
-
|
|
Total
Adjustments
|
|
(16,375)
|
|
(144,562)
|
|
(409,418)
|
|
(280,968)
|
|
Adjusted total
revenue
|
|
$
393,781
|
|
$
713,122
|
|
$
1,892,647
|
|
$
3,071,284
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Income tax provision
|
|
Three Months
Ended,
|
|
Twelve Months
Ended
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Income tax benefit
(provision)
|
|
$
149,473
|
|
$
(34,591)
|
|
$
109,156
|
|
$
(159,232)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
Noble Homer
Ferrington arbitration award
|
|
-
|
|
-
|
|
-
|
|
(27,285)
|
|
|
Noble
Discoverer cancellation agreement
|
|
-
|
|
(111)
|
|
-
|
|
(111)
|
|
|
Noble Tom
Prosser cancellation agreement
|
|
(334)
|
|
-
|
|
(334)
|
|
-
|
|
|
Cancellations with
Freeport:
|
|
|
|
|
|
|
|
|
|
|
|
Contractual
items
|
|
-
|
|
-
|
|
(32,035)
|
|
-
|
|
|
|
Termination date
valuation of contingent payments
|
|
-
|
|
-
|
|
(1,211)
|
|
-
|
|
|
Loss on
impairment
|
|
144,103
|
|
-
|
|
145,551
|
|
-
|
|
|
Debt
retirement
|
|
762
|
|
-
|
|
(202)
|
|
-
|
|
|
Discrete tax
items
|
|
8,472
|
|
-
|
|
13,985
|
|
-
|
|
Total
Adjustments
|
|
153,003
|
|
(111)
|
|
125,754
|
|
(27,396)
|
|
Adjusted income tax
provision
|
|
$
(3,530)
|
|
$
(34,480)
|
|
$
(16,598)
|
|
$
(131,836)
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
net income (loss) attributable to Noble Corporation
plc
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Noble Corporation plc
|
|
$
(1,302,850)
|
|
$
(152,241)
|
|
$
(929,580)
|
|
$
511,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
Noble Homer
Ferrington arbitration award
|
|
-
|
|
-
|
|
-
|
|
(149,368)
|
|
|
Noble
Discoverer cancellation agreement
|
|
-
|
|
(139,821)
|
|
-
|
|
(139,821)
|
|
|
Noble Tom
Prosser cancellation agreement
|
|
(16,041)
|
|
-
|
|
(16,041)
|
|
-
|
|
|
Cancellations with
Freeport, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
Contractual
items
|
|
-
|
|
-
|
|
(335,578)
|
|
-
|
|
|
|
Termination date
valuation of contingent payments
|
|
-
|
|
-
|
|
(12,689)
|
|
-
|
|
|
Loss on
impairment
|
|
1,298,030
|
|
418,298
|
|
1,313,198
|
|
418,298
|
|
|
Gain on
extinguishment of debt, net of tax
|
|
(7,510)
|
|
-
|
|
(17,612)
|
|
-
|
|
|
Discrete tax
items
|
|
(8,472)
|
|
-
|
|
(13,985)
|
|
-
|
|
Total
Adjustments
|
|
1,266,007
|
|
278,477
|
|
917,293
|
|
129,109
|
|
Adjusted net income
(loss) attributable to Noble Corporation plc
|
|
$
(36,843)
|
|
$
126,236
|
|
$
(12,287)
|
|
$
640,109
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
diluted EPS
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted diluted
EPS
|
|
$
(5.36)
|
|
$
(0.63)
|
|
$
(3.82)
|
|
$
2.06
|
|
|
Noble Homer
Ferrington arbitration award
|
|
-
|
|
-
|
|
-
|
|
(0.60)
|
|
|
Noble
Discoverer cancellation agreement
|
|
-
|
|
(0.58)
|
|
-
|
|
(0.56)
|
|
|
Noble Tom
Prosser cancellation agreement
|
|
(0.07)
|
|
-
|
|
(0.07)
|
|
-
|
|
|
Cancellations with
Freeport, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
Contractual
items
|
|
-
|
|
-
|
|
(1.38)
|
|
-
|
|
|
|
Termination date
valuation of contingent payments
|
|
-
|
|
-
|
|
(0.05)
|
|
-
|
|
|
Loss on
impairment
|
|
5.34
|
|
1.73
|
|
5.40
|
|
1.69
|
|
|
Gain on
extinguishment of debt, net of tax
|
|
(0.03)
|
|
-
|
|
(0.07)
|
|
-
|
|
|
Discrete tax
items
|
|
(0.03)
|
|
-
|
|
(0.06)
|
|
-
|
|
Adjusted diluted
EPS
|
|
$
(0.15)
|
|
$
0.52
|
|
$
(0.05)
|
|
$
2.59
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/noble-corporation-plc-reports-fourth-quarter-and-full-year-2016-results-300405385.html
SOURCE Noble Corporation